The weak hands are folding, just as the first wave of weak handed homeowners have done. Most of the "developers" (speculators) listed here are from out of town - Sacramento appears several times - soon this contagion will spread to the "stronger" hands. 2008 will make 2007 look like a game of musical chairs, without the chairs - if you are standing right now, when the music stops on your developments finances, there will be no one to take your place. These foolish speculators were paying $100k to $200k for raw land that only 6 years ago was selling for $10k-$20k per acre - what were they thinking?
From the Bakersfield Californian:
BY GRETCHEN WENNER AND VANESSA GREGORY,
Homeowners aren’t the only ones defaulting on property loans these days.
While not unprecedented in California, the sudden crop of developer defaults are apparently a first for the metro area.
“Never in Bakersfield,” said Bakersfield appraiser Gary Crabtree of Affiliated Appraisers.
In the early 1990s, Crabtree said, the Palmdale-Lancaster real estate market cratered because of layoffs in the aerospace industry.
Tom Cook, general manager of Bakersfield paving and grading firm Burtch Construction, said Burtch is owed money by Dunmore Diamond Ridge LLC for work at a southwest Bakersfield project touched by a complicated November bankruptcy filing.
“We haven’t been paid anything at all,” Cook said Thursday about a $900,000 bill submitted in mid-May.
• Paladino Hills LLC
Loan amount: $10 million
Location: 80 acres near the northwest intersection of Highway 178 and Alfred Harrell Highway
• Dunmore Westport LLC
Loan amount: $20 million
Location: 79 acres at the southwest intersection of Morning and Paladino drives
• GSJ Co. LLC
Loan amount: $5.5 million
Location: 147 acres at the northwest intersection of Paladino and Morning drives.
• Reynen & Bardis (Cal Kern) LP
Loan amount: $6.8 million
Location: 58 acres near Morning Drive between 178 and Paladino Drive
• Canyons LLC
Loan amount: $3.3 million
Location: Nearly 847 acres south of Hart Park and Alfred Harrell Highway.
Loan amount: $5.1 million
Location: 33 acres on the north side of Paladino Drive east of Morning Drive.
• Dunmore Diamond Ridge LLC
Loan amount: $30.6 million construction loan
Location: 77 acres on the south side of McCutchen Road between Ashe and Stine roads.
• BVGG LLC
Loan amount: $4 million
Location: About 72 total acres on several parcels near Cottonwood Road around Casa Loma Drive and Watts Drive, including former golf course land switched to residential use.
• Cottonwood Villas LLC
Loan amount: $2 million
Location: 40 acres north of Cottonwood Road between Planz and Pacheco roads.
• Poplar Pointe LLC
Loan amount: $9.9 million construction loan
Location: 10 acres on the northwest corner of Filburn and Poplar avenues.
• Eagle Meadows of Wasco 77 LLC; Eagle Meadows of Wasco 75 LLC
Loan amounts: Two loans of $2.1 million apiece
Locations: 77 acres of ag land at the southeast corner of Gromer and Magnolia avenues; 75 acres of ag land near the southwest corner of Palm and Filburn avenues.
• SunCal Mission Lakes LLC
Loan amount: $74.3
Location: About 515 acres north of 7th Standard Road northwest of the intersection with the Calloway Canal.
• Desert Star Communities LP and related companies
Loan amount: $11.4 million construction loan
Location: 23 acres at the northwest corner of 35th Street West and Orange Street.